Theme Settings

This component gives possibility to construct custom blocks with any widgets, components and elements inside, like this theme settings

Menu Type
Toggled left menu
Unfixed left menu
Fixed topbar
Menu color
Flyout menu
Login color
Content no max-width
App max-width
Gray background
Gray topbar
Squared card borders
Card shadow
Borderless cards
Menu shadow
Riena Kirana
FR CGS_CIMb (YU) : Matahari Department Store | PDF
Losing its shine
LPPF IJ / LPPF.JK | REDUCE - Downgrade | Rp7,950.00 tp:Rp7,100.00▼
Mkt.Cap:US$1,609.00m | Avg.Daily Vol:US$2.49m | Free Float:82.50%
Retail
Author(s):Kevie ADITYA +62 (21) 3006 1738,

--------------------------------------------------------------------------------

■ LPPF’s core NP growth was flat yoy in 1H18, below expectations and in stark contrast to the 20% growth recorded by its peers amid the recovery in purchasing power.
■ The shift in strategy to DP products amid execution challenges in its merchandising initiatives, while facing store realignment, suggest growth may take a backseat.
■ With growth slowing to a trickle, we forecast flatearnings CAGR in 2017-20F and a rapidly declining FCF. We expect more market downgrades to follow.
■ We cut 2018-20F EPS by 4-18%. We downgrade our rating to Reduce and cut our TP to Rp7,100, based on 10.7x P/E or a 50% discount to sector’s target P/E.
Riena Kirana
FR CGS-CIMB (YU) : Delta Dunia Makmur | PDF
If coal prices stay higher for longer...
DOID IJ / DOID.JK | ADD - Maintained | Rp775.00 tp:Rp1,200.00▼
Mkt.Cap:US$460.50m | Avg.Daily Vol:US$1.20m | Free Float:53.30%
Ind Goods & Services
Author(s):Felica TRENSENO +62 (21) 3006 1722,

--------------------------------------------------------------------------------

■ 1H18 net profit of US$18m (+110% yoy) was below expectations at 23% of our and 21% of Bloomberg consensus full-year forecasts; the weather was to be blamed.
■ Margin recovery in 2H18Fhinges upon delivery of new equipment, weather, resilient coal price, and new clients in the pipeline.
■ FY18-20F earnings cut by 8-11% to reflect more conservative overburden volume.
■ We like DOID for its order book: new contracts booked in 1H18 amounted to US$2bn; its long-term order book now stands at US$7bn.
■ Add call maintained on attractive valuations and resilient coal prices. Our new TP of Rp1,200 is now pegged to its 8-year mean EV/EBITDA of 4.6x.
Riena Kirana
FR CGS-CIMB (YU) : Kalbe Farma | PDF
Unexciting growth as the new norm
KLBF IJ / KLBF.JK | REDUCE - Downgrade | Rp1,360.00 tp:Rp1,200.00▼
Mkt.Cap:US$4,423.00m | Avg.Daily Vol:US$1.88m | Free Float:43.50%
Pharmaceuticals
Author(s):Patricia GABRIELA +62 (21) 3006 1734,

--------------------------------------------------------------------------------

■ 1H18 net profit was flat yoy at Rp1.2tr and in line at 48/49% of consensus/CIMB FY18F; however, below company’s initial guidance of 5-7% yoy net profit growth.
■ Margin was under pressure (2Q18 GPM down 0.6% pt qoq and 0.9% pt yoy), though EBIT margin was flat. Currency headwinds may emerge.
■ KLBF plans to raise prices for consumer health and nutritional products by c.2-4% in 2H18; below 1% pt impact on blended FY18F sales growth but risks volume decline.
■ We cut FY18-19F earnings by 4-7% with a view of gradual recovery in 2020F; though risk is on the downside given the lack of pricing power and unexciting volume growth.
■ Downgrade to Reduce with a lower Rp1,200 TP, implying 23x FY18F P/E, lower end of the past 5-year P/E range to reflect lack of growth.
Riena Kirana
FR CGS-CIMB (YU) : Economic Update | PDF
Jul 2018 CPI inflation
Author(s):Yee Ping LIM +60 (3) 2261 9083, Michelle CHIA

--------------------------------------------------------------------------------


■ Headline inflation edged up to 3.2% yoy in Jul, as accelerating food and core inflation was mitigated by the slower gain in administered prices.
■ Rising input costs as a result of currency weakness has yet to significantly affect overall consumer prices.
■ Our average inflation forecast of 3.4% for 2018 remains intact.
Riena Kirana
FR CGS-CIMB (YU) : Pembangunan Perumahan | PDF
Risks priced in; undemanding valuation
PTPP IJ / PTPP.JK | ADD - Maintained | Rp2,050.00 tp:Rp3,700.00▼
Mkt.Cap:US$880.20m | Avg.Daily Vol:US$1.84m | Free Float:21.50%
Construction
Author(s):Aurelia BARUS +62 (21) 3006 1721,

--------------------------------------------------------------------------------

■ PTPP’s 1H18 core NP of Rp472bn (-18% yoy, -29% qoq) was below expectations, mainly due to a 74% yoy increase in interest expenses.
■ 1H revenue also missed at Rp9.5tr (+17% yoy, -58% qoq), offset by improvement in GPM to 15.4% which was boosted by the property business. This led to in-line EBIT.
■ While debt could increase, weighted average cost of debt could fall despite rising interest rates. Debt-to-equity should remain manageable at 0.3-0.6x in FY18-20F.
■ Assuming longer receivable and inventory days, as well as higher bad debt expenses, PTPP should still have positive operating cashflow in FY18-20F.
■ Add call maintained with a lower SOP-based TP of Rp3,700.
Tono tonce
Cfo